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Rosenberg OKs delegation to city manager to lock in multi-year electricity contracts through cooperative program
Summary
Council authorized the city manager to execute electricity supply agreements through the OMNIA/Omnia Partners cooperative with procurement advisor Tradition Energy, allowing contracts up to 84 months and rates up to 7' per kilowatt-hour; vote was 7'0'0.
The Rosenberg City Council unanimously approved Resolution R4028, delegating authority to the city manager to execute power-supply agreements for city facilities through the OMNIA Partners cooperative program with procurement support from Tradition Energy.
Louis, a city staff member, told the council that Tradition Energy advised the city that market conditions can fluctuate rapidly and recommended a multi-year procurement strategy (up to 84 months) to secure favorable rates. Louis told councilors staff recommended approval of Resolution R4028 and provided a confidential pricing sheet at the dais for review. The staff recommendation capped acceptable supply rates at no more than 7.0 cents per kilowatt-hour and proposed delegating authority to act quickly when market conditions warrant.
A Tradition Energy representative, Michael Skelton, answered council questions about delivery and pass-through charges, explaining that CenterPoint delivery fees are tariff-based and separate from a retail electricity supply contract. Skelton said delivery costs depend on meter peak-demand measures and that utilities have increased delivery rates to account for infrastructure investments following recent grid stress events.
Councilor Jaramillo moved to approve Resolution R4028; the motion was seconded and the council adopted the resolution by a recorded voice/roll vote of 7 to 0.
The resolution authorizes the city manager to execute one or more supply agreements for terms not to exceed 84 months and at an electricity rate not to exceed 7 cents per kilowatt-hour, as advised by Tradition Energy. Staff said they will monitor delivery charges and address them in the context of new facilities and growth, but delivery fees are set through utility tariffs and not directly negotiable in a supply contract.
